Business creation is the process of creating new companies, products and services. It is a key driver of economic growth and adaptation and a career choice for millions of people.
The economic benefits of business creation include enhanced productivity, job creation, and innovation. However, it also carries substantial costs in time and money. The vast majority of start-ups do not achieve profitability. This suggests that policymakers can gain significant benefits from a larger share of business creation by reducing the cost and encouraging more start-ups to become profitable.
A record 5.4 million applications were filed to form new businesses in 2021, the highest total on record since 2005. The exceptional pace of filing reflects a dramatic shift in business formation that may have altered established trends in the U.S.
The jump in intent to form new businesses may be particularly meaningful for high-growth sectors, including financial services, information technology, and healthcare. These industries faced extreme shocks to their normal operations throughout the COVID-19 pandemic, and the surge in intent to form new companies likely reflects a need to adapt to these challenges.
The first step is generating a unique business idea and researching it thoroughly. Once you’ve found a concept that aligns with your interests and skills, you can turn it into a viable, realistic business plan.
Becoming an entrepreneur is a great way to set your own schedule and earn income. It also gives you a sense of accomplishment and control, which can be very satisfying.